Glencore Xstrata unit slashes funding for its Tampakan copper-gold project
Sagittarius Mines Inc, a unit of Glencore Xstrata (LON:GLEN), announced it is cutting the budget for its $5.9 billion Tampakan copper-gold project in the Philippines, considered one of the largest foreign direct investments in the country.
According to Reuters, the cost-saving move will see as many as 920 jobs go as operator Sagittarius, which is majority owned by Glencore Xstrata, is deciding what to do with Tampakan.
In a press release Monday SMI executive vice president, Justin Hiller, said outstanding issues and challenges have not made possible for the company to make “adequate progress” toward the project goals.
“Without fundamental change in approach, progress is unlikely to improve in the foreseeable future,” Hiller added.
The project, delayed to 2019 at the end of last year, still faces substantial development challenges, such as a ban on open-pit mining in South Cotabato province.
Tampakan sits atop the mountainous village of Tablu in Tampakan, South Cotabato.
Based on SMI's feasibility study, the mine will boost the Philippines' gross domestic product (GDP) by 1%.
Image courtesy of SMI